Health-care consumption in the United States has risen from 5.2% in 1960 to 17.8% of 2009 Gross Domestic Product (GDP) creating a burden that will soon be too heavy for the economy to bear. This paper proposes that the primary accelerants of health-care expenditures result from the third-party payer system that emerged in the 1950s. These corporate benefits and government subsidies, when overlaid on the traditional health-care model, have led to sustained increases in the production, recommendation, and consumption of health care while magnifying the moral hazard problem inherent in health insurance
